Mississippi’s attorney general says the nation’s largest tobacco company will pay the state $15 million to settle claims that it was underreporting the number of cigarettes it was shipping to the state.
On Monday, Attorney General Jim Hood announced the settlement with Reynolds American of Winston-Salem, North Carolina. Reynolds American succeeded two companies that Mississippi raised claims against — R.J. Reynolds and Brown & Williamson.
In doing so, Hood agreed to take less money than a Jackson County chancery judge had ruled was due to Mississippi. Reynolds American had acknowledged in stock filings that it could owe at least $18.8 million.